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Types of rental agreements
Alberta has 2 types of rental agreements:
Definitions
Drafting a tenancy agreement
The tenancy agreement is a contract of terms between the landlord and tenant, agreed on before the tenant moves in. The agreement may be written, verbal or implied, but written is always better because it provides evidence should there be a dispute.
A tenancy agreement cannot take away any of the tenant’s rights outlined in the Residential Tenancies Act (RTA). Anything in the agreement that waives any rights set out in the RTA is void.
A residential tenancy agreement should be in writing and contain the following information:
- date of agreement
- names and addresses of all parties
- address or description of the location of the residential premises
- term of the tenancy
- rent amount, where, when and how it is to be paid
- clauses about whether utilities, furniture, appliances, parking, etc. are provided and at whose expense
- names of the people who are permitted to live in the residential premises
- security deposit amount, interest, and what the landlord is allowed to deduct for at the end of the tenancy
- care, maintenance and repair responsibilities
- insurance requirements
- rules for additional fees (such as NSF charges), guests, pets, etc.
- signatures of landlord and tenant
Security (damage) deposit
Landlords usually ask tenants for a security deposit, sometimes called a damage deposit.
The amount of a security deposit cannot be more than one month's rent at the time tenancy starts.
The security deposit cannot be increased as rent increases, or for any other reason during the tenancy. Tenants can ask for a receipt for any fees paid, showing the amount, date and parties in the transaction.
Landlords must deposit all security deposits into an interest-bearing trust account in a bank, treasury branch, credit union or trust company in Alberta within 2 banking days of the time they collect them from the tenant.
Interest chart
The minimum annual interest rate that landlords must pay on security deposits is determined by a formula set out in the Security Deposit Interest Rate Regulation.
Time period | Minimum Annual Interest Rate |
---|---|
January 1, 2024 to December 31, 2024 | 1.6% |
January 1, 2009 to December 31, 2023 | 0% |
January 1, 2008 to December 31, 2008 | 0.5% |
January 1, 2007 to December 31, 2007 | 0.3% |
January 1, 2002 to December 31, 2006 | 0% |
January 1, 2001 to December 31, 2001 | 1.75% |
January 1, 2000 to December 31, 2000 | 1.15% |
Calculate your security deposit interest
Security deposit interest calculator
Sub-meter for rental unit
A landlord will often use a master meter to measure all the natural gas and electricity used by a whole apartment building, and include utility costs in the rent. It does not measure the amount used by each rental unit.
A sub-meter measures the natural gas and electricity for a rental unit. Landlords may install a sub-meter for all rental units in a building.
These meters tell the landlord exactly how much energy each tenant uses. The landlord can bill each tenant for their own consumption, but this must be included as a term in any tenancy agreements. Sub-meters are different from master meters installed in an individual rental unit that allow a tenant to be billed directly from the utility provider.
Sub-meters:
- help landlords to fairly and accurately divide the costs among their tenants.
- allow tenants to pay for the energy they actually use
- allow tenants to benefit from their own energy conservation efforts
- encourage tenants to cut energy costs and usage, which helps the environment
- shift energy price changes from the landlord to the tenant
Landlords may install sub-meters during a tenancy, but are not allowed to begin charging separate amounts for utilities unless the tenant consents or a fixed-term tenancy expires. Any increase in the total amount a tenant must pay to the landlord would constitute a rent increase under the RTA.
For more information, read the Sub-meters for rental units tip sheet.
Sub-meter resources
Contact
For more information on topics related to landlords and tenants, contact the Consumer Contact Centre.
For resolving a dispute, learn more about the Residential Tenancy Dispute Resolution Service.